VeriFone Systems has been rallying since the summer, and one
investor is giving it more room to run.
optionMONSTER's tracking systems detected the purchase of 5,500
February 27 calls for $1.90 and the sale of an equal number of
March 29 calls for $1.60. Volume was below open interest in the
27s, which indicates that an existing short position was closed and
rolled forward in time.
The investor probably owns shares in the maker of credit-card
payment systems and had previously sold the February contracts as
part of a
. Adjusting the strategy cost $0.30 but raised by $2 the price at
which the trader must unload their stock. He or she also committed
to an additional month in the trade. (See our Education section.)
PAY is down 3.72 percent to $27.91 in afternoon trading but is up
67 percent since last June. That rebound came amid improving
earnings and followed a huge selloff in the preceding 14 months.
Total option volume is more than quadruple the daily average so far
in the session, with calls outnumbering puts by a bullish 39-to-1
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